Before you start, ask your potential customer to send you their income tax number and tax clearance certificate number or PIN so you can use the new TCS service to check their compliance status with SARS.
This will show if they have any outstanding taxes with SARS. If they do, chances are they aren't good for the money.
Here's how to check their status…
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Step #1: On eFiling, go to 'Tax Status'.
You'll see 'Activation' under the verifications heading. Click Activation.
Step #2: Click on the tick box, and then the Activate button.
This will activate this service, and the list of links on the left of the page will now show a few more options for you to select from.
Step #3: You can chose either, 'Activation', 'New Verification Request' or 'Status Verification History'.
Step #4: To check up on the compliance status of your customer, click the New Verification Request link.
Step #5: Put in their income tax number, and then enter the TCC or the PIN number. You don't have to insert both. Type out the security code given, then click on the Continue button.
The next page is a quick confirmation that the TCC or PIN actually belongs to your customer. Double-check these details. If they don't correspond to the name and details of the taxpayer who gave you the TCC or PIN, then follow up with them and ask for a new TCC or PIN number. Or, if they become evasive, report the matter to SARS. They might be trying to commit fraud using a doctored TCC. If you're happy with the information, click the Continue button.
Step #6: This next page is important. It's a live check to see their status again. Make sure you click on the 'refresh' link to update the status on representation of the taxpayer's compliance status at SARS.
This is just one of the great features of the tax compliance system.
One of the other great features of this system is getting your TCC quickly and easily. We show you how in five easy steps in the Practical Tax Loose Leaf.
This system also reports your tax status in real time. This means, if you have any outstanding tax debts, or you're non-compliant in a specific area of tax, SARS will let you know where you've gone wrong, so you can fix it and avoid thousands in wasteful penalties and interest. The Practical Tax Loose Leaf shows you the four areas you need to comply with so you're compliant and can get your tax clearance certificate.
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